Vidullanka PLC commissioned its 9th small hydro power plant (SHPP) in Uganda on March 18. The Muvumbe SHPP, a 6.5 MW run of the river based small hydro power project utilizes the flow of the Nyakizumba river and is expected to generate and supply 31.4 GWh of electricity per annum to the national grid of Uganda.
The project potential was identified back in 2012 by a team of Vidullanka’s engineers and subsequently the Muvumbe Hydro (U) Ltd was incorporated, as a wholly owned subsidiary of Vidullanka PLC to undertake the investment.
In supporting the investment two premier Sri lankan commercial banks, namely HNB Bank PLC and Bank of Ceylon teamed up to finance the debt component of the project investment through a syndicated facility. The Exchange Control Department of Central Bank of Sri Lanka was supportive of this overseas investment considering the long term benefits to the country, which stands to bring in a substantial amount of foreign exchange over the following years.
The company obtained all the necessary approvals from the Uganda Authorities before the construction, which was ceremoniously commenced by the Prime Minister of Uganda Dr. Ruhakana Rugunda on 21st September 2015.
The project company, Muvumbe Hydro (U) Ltd has a 20 year Power Purchase Agreement with Uganda Electricity Generation and Transmission Company Ltd (UETCL) along with the implementation agreement with Ministry of Energy and Mineral Development, Uganda. The project was implemented in accordance with the International Finance Corporation Performance Standards on the environment and social sustainability and was monitored by the Electricity Regulatory Authority Uganda, National Environmental Management Authority of Uganda and the GETFiT Secretariat.
In addition to the supply of environmentally friendly electricity, the Muvumbe has teamed up with an NGO named AICM, to carry out a series of social wellness initiatives with the objective of improving the livelihoods of the local population. The Company has also constructed and delivered a community health centre in Kigrama, and built five road bridges in Maziba county as part of its corporate social responsibility.
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